Planning Commission approves two-year extension for stalled Uptown mixed-use project

The Palm Springs Planning Commission voted 5-2 Tuesday night to grant a two-year extension for a stalled luxury condominium project on North Palm Canyon Drive, giving developers until April 2027 to begin construction.

The commission approved the extension for Old Las Palmas Partners LLC’s project, a mixed-use development featuring 24 residential condominium units and 5,411 square feet of commercial space at 575 North Palm Canyon Drive, located between The Chicken Ranch and Copley’s restaurants. The project’s original entitlements were set to expire April 10.

Developer Peter Mahler, speaking remotely to the commission, said the project was delayed due to the custom nature of the homes and challenges in securing committed buyers.

“These are custom home developments,” Mahler said. “The exteriors are the same, the interiors are all custom, and they’re being done at a level of a Aman hotel.”

Mahler said he has eight committed buyers who are Palm Springs residents looking to downsize from larger homes. He expects those buyers will purchase approximately 14 units, with some combining multiple units or purchasing guest quarters.

Commissioner Scott Miller supported the extension, noting the project’s approval came during the COVID-19 pandemic.

“This was a good project then. It’s a good project now,” Miller said. “It got approved by the Planning Commission during COVID, it got approved by the City Council just before the public health emergency of COVID was announced.”

Vice Chair Lauri Aylaian proposed amended language for the commission’s findings, citing circumstances beyond the developer’s control including tariffs, interest rate changes and construction worker availability due to immigration policy changes.

The two-story project would have a maximum building height of 30 feet and feature contemporary architecture with perforated metal screens. Commercial space would face North Palm Canyon Drive, while residential units would be located along Chino Drive.

Commissioners Carl Baker and John Morrill voted against the extension. Baker questioned the project’s viability, citing empty commercial spaces elsewhere on Palm Canyon Drive and concerns about the developer’s ability to secure financing.

Mahler said his group has spent $4.5 million on the project and expects to need eight to 12 months to complete final plans and obtain city approvals. Under city code, this represents the final possible extension for the project.

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